https://www.taxtmi.com/caselaws?id=245278 A reimbursement of data processing cost paid to a head office was treated as non-royalty under the Indo-Belgium DTAA because the branch had no independent right to use or exploit the software and only passed data for processing. No tax deduction at source was therefore required, and disallowance under section 40(a)(i) was unwarranted. The same cost was also held to be a specific business expense, not a general administrative expense, so section 44C did not apply. An additional disallowance was deleted because it would have resulted in double addition where the amount had already been disallowed by the assessee. en-us Fri, 14 Mar 2014 00:00:00 +0530 Tue, 25 Mar 2014 14:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=245278 A reimbursement of data processing cost paid to a head office was treated as non-royalty under the Indo-Belgium DTAA because the branch had no independent right to use or exploit the software and only passed data for processing. No tax deduction at source was therefore required, and disallowance under section 40(a)(i) was unwarranted. The same cost was also held to be a specific business expense, not a general administrative expense, so section 44C did not apply. An additional disallowance was deleted because it would have resulted in double addition where the amount had already been disallowed by the assessee. Case-Laws Income Tax Fri, 14 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=245278